Warner Bros. Discovery (WBD) is undergoing a significant restructuring, a move that could reshape its approach to the burgeoning Over-The-Top (OTT) market in India. The planned split into two publicly traded companies has the potential to sharpen the company's focus on streaming, but it also presents a unique set of challenges in the Indian context.

The restructuring, expected to be completed by mid-2026, will divide WBD into two distinct entities: one housing the streaming and studio assets (including Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max) and another encompassing the global linear networks (such as CNN, TNT Sports, and Discovery). This separation marks a reversal of the 2022 WarnerMedia-Discovery merger, driven by the increasing importance of streaming growth and the declining influence of traditional cable TV.

This strategic shift could provide a boost to WBD's OTT plans in India. By separating the high-growth streaming business from the legacy cable operations, WBD can allocate resources and attention more effectively to compete in the competitive Indian market. The streaming-focused entity will be able to make quicker, more agile decisions tailored to the specific demands of the Indian OTT landscape. This includes investing in local content, forging strategic partnerships, and exploring innovative pricing models.

However, WBD faces considerable challenges in making its mark in India's OTT sector. The Indian market is characterized by intense competition, with global giants like Netflix and Amazon Prime Video vying for market share alongside established domestic players like ZEE5 and JioCinema. These platforms have already invested heavily in local content and established strong brand recognition.

One significant hurdle is the price-sensitive nature of the Indian market. To attract subscribers, OTT platforms must offer competitive pricing while still maintaining profitability. This requires careful balancing of subscription fees, advertising revenue, and content costs. WBD's discovery+ is focusing on a subscription-based model, but it also recognizes the need to supply high-quality content faster to satisfy the audience's appetite.

Another challenge lies in navigating the cluttered digital space. With numerous OTT platforms vying for attention, it is becoming increasingly difficult to stand out and acquire new subscribers. Effective marketing and content differentiation are crucial to cut through the noise. Sai Abishek, head of factual and lifestyle cluster at Warner Bros. Discovery, South Asia, recognizes the need to make their content known to audiences and easily accessible across different platforms.

Moreover, WBD must address the rising costs associated with content creation and acquisition. Producing high-quality local content requires significant investment, and competition for talent and resources is fierce. WBD is commissioning Indian originals and acquiring international titles to cater to diverse audiences, but it must do so in a cost-effective manner.

Despite these challenges, WBD has several strengths that it can leverage to succeed in the Indian OTT market. Its extensive library of Hollywood content, including popular franchises and critically acclaimed series, provides a strong foundation for attracting viewers. By dubbing and localizing this content, WBD can broaden its appeal to Indian audiences. The company plans to program 3,000 hours of global and local content in India in 2024, scaling up to 3,500-4,000 hours in 2025, showing its commitment to growth in the region. Furthermore, WBD's focus on factual and lifestyle content through Discovery+ can differentiate it from other platforms that primarily focus on general entertainment.

Ultimately, the success of WBD's OTT plans in India will depend on its ability to adapt to the unique dynamics of the market, overcome the challenges it faces, and leverage its strengths to deliver compelling content at a competitive price. The restructuring provides an opportunity to sharpen its focus and streamline its operations, but execution will be key.